Question

Scenario:____ Mina has been asked to create a budget for her household. Her father explained that she will need to include the following expense categories:_____ auto insurance, the electricity bill, the house payment, grocery expenses, discretionary spending. Which of Mina's expenses should most likely be ranked as fixed expenses? a. groceries b. house payment c. discretionary spending d. automobile insurance e. electricity bill

Answer 1

Answer:

house payment

automobile insurance

Explanation:

right on edge

Answer 2

The following expenses should be ranked as fixed expenses in the budget prepared by Mina:

• Auto insurance: While buying insurance for an asset, the premiums to be paid are fixed in the agreement and they are not usually subject to market fluctuations.
• House payment: The agreement made while taking the house on rent has the mention of the fixed amount to be paid as rent for the as long as the agreement is effective.
• The prices of other items like grocery, electricity, etc., fluctuate with fluctuations in the market. Hence, they cannot be listed as fixed expenses.